Impact of pandemic on startup projects

Abstract

The modern market environment is an environment of variability and threats that constantly challenges those who operate in it. COVID-19 pandemic has negatively affected all economic processes, without exception, in all the states of the world. Its consequences are: the increase in the number of unemployed, the bankruptcy of small and medium-sized businesses, disruption of supply chains, etc. The most sensitive to any changes in the economic environment are small business and startup projects, so the modern situation in the world makes it necessary to the develop the measures for minimization the negative impact of pandemic, quarantine restrictions on the activities of startup projects. The definition “startup” is considered and the common feature of the definition is defined as understanding that startup, first of all, is the implementation of a new idea that satisfy the need of consumers with a new product or service. The results of the investigation of leading research structures concerning the reasons for closing startup projects are analyzed. The pandemic impact on the financial condition of startup projects in various sectors of the economy is analyzed as well. It is determined that one of the common reasons for the loss of a significant share of the profits of large and powerful companies that could not adapt to the new conditions of existence is the inability to conduct business online with consumers. The most attractive areas for the start and development of the startup project during pandemic and prospects for further activities are identified. The experience of the countries of the world in providing state support for startup projects during the pandemic is presented. Support programs for Ukrainian startup projects are indicated. It is determined that the extraordinary conditions of the market environment provide not only threats, but also opportunities for the search for new ideas and their implementation by creative startups. It is also determined that the project success depends on the level of its adaptability, on the team readiness to change business model, to look for alternative ways of receiving resources and investments. Measures for minimizing the negative impact of the pandemic on the startup projects activities are proposed.